. the man driving the car is gregg bergersen. he's a civilian analyst atthepentagonwithone of the nation's highest security clearances. his companion is tai shen kuo, a spy for the people's republic of china. bergersen knew a secret that the chinese desperately wanted to know, and neither man knows that what they're about to do is being recorded by two cameras the fbi has concealed in their car. >> let you have the money. >> oh, oh. are you sure that that's okay? >> yeah, it's fine. >> welcome to 60 minutes on cnbc. i'm bob simon. in this edition, we turn our attention to some foreign intrigue. first, a story about a mysterious computer virus that struck an iranian nuclear plant. later, the report of how american agents hunted a notorious arms dealer. and finally, an account of a chinese-american spy trying to steal u.s. military secrets for china. we begin with the story of stuxnet, a computer virus considered to be the world's first destructive cyberweapon. it was launched several years ago against an iranian nuclear facility, almost certainly with some u.s. involvement. but as steve k

's oil flows. lawmakers have until march the 1st to cut $500 billion fromthepentagon's budgetover the next decade. if they don't automatic cuts kick. in with that dangling overhead the military has had its hands tied they tell us. jennifer pentagon -- griffin is at the pentagon tonight. i know they want more money. >> that's right. it is significant in terms of the message that it sends to iran right now in a very tense time in the middle east. but it is and it is the first concrete sign that the budget uncertainty is going to have a real impact on national security. at a time when tensions are are high with iran over its nuclear program and negotiations might be coming soon, the u.s. had had a policy of having two aircraft carriers over the golf for the past two years. the uss eisenhower will deploy later this month. but it will go alone we're told to replace the uss. according to george little said facing budget uncertainty continuing budget resolution and across the board sequestration cuts made this request to the secretary and he approved. secretary of defense approved to rev

scrutiny. david martin is atthepentagon. >>reporter: the use of drones to hunt and kill suspected terrorists has replaced the all-out air strikes with which the wars in iraq and afghanistan began. drones have become the first line of defense against terrorists shadowing and striking them in remote areas of pakistan and yemen. >> impact. >> i'm a big advocate of drones. >> reporter: today former defense secretary robert gates argue head that in addition to the advantage of not putting a pilot's life at risk drones cause remarkably few civilian casualties. >> first of all the numbers i believe are extremely small. and second you do have the ability to limit that collateral damage more than with any other weapon system that you have. >> reporter: critics dispute that and say civilian casualties fuel hatred of america and create more terrorists than they kill. but armed drones are only increasing in number. this helicopter drone which the navy uses for surveillance is about to be armed with laser guided rockets. giving it the capability to launch strikes from the back of ships. and th

this will mean damaging layoffs of teachersers law enforcement and food safety inspectors andthepentagonwillbe hit, too. they propose a mix of spending cuts and, yes, more taxes through limiting deductions for the wealthy. i sat down late friday with house democratic leader nancy pelosi and asked her are about the fast approaching deadline. congress woman pa lo pelosi, we back to "fox news sunday." >> welcome to the capitol. >> the white house says sequestration will have a severe effect on many americans. house republicans agree but say the answer is to find other spending cuts, not tax hikes. >> i would think that sequestration is a bad idea all around. this should be something that is out of the question. the fact is we have had plenty of spending cuts. $1.6 trillion in the budget control act. what we need is growth. we he need growth with jobs. and if you have spending cuts education of our children and other investments like the national institutes of health where you are hindering growth you are not delegate t going te deficit. we need more revenue and more cuts. i would like to

thepentagon. ithas to do with he's been mean to president bush. he's been mean to john mccain. this process has said more about republicans than quite franklin it has said about chuck -- >> what about this issue of him -- is he going to be in charge of the pentagon? >> i think that is going to be the test for chuck hagel when he is sworn in fairly quickly and fairly soon as the next defense secretary. and i think there's no doubt he's going to go into that building and he'll take strong command of it. and that's what is going to be remembered. >> that is the toughest job in washington for the best and most qualified person and this process has weakened him, and his personality is probably not suited for this job. i can assure you of one thing. robert gibbs is going to be very happy he's not standing at that press podium the first time chuck hagel opines about the president's foreign policy and their disagreements on it. >> i can tell you there were a lot of reporters that were answering to be on this trip to brussels. >> the reasons that are being shown to hold up this nomination, it's not

them to be moved from the cia back tothepentagon. butthe fact is that there has been something like a 700% increase in the use of drones under president obama as compared to george w. bush. >> and andrea, as you know, from your sources at the agency and i know from my sources not only from the agency but in the entire intelligence community when barack obama came into office, they specifically said, they wanted to ramp up drone operations. and they wanted there to be a side-by-side comparison of how many strikes bush did versus how many strikes they did. for brennan to say that he wants to pull back on drone strikes, that's just -- that's just not accurate. and that's not what's been happening since january 20th, 2009. you can go back. and when the history is written, you will go back to january 20th, 2009, and see a very deliberate -- >> executive orders. >> executive orders. and again, i think most americans probably support this policy. so it's not like i'm talking about anything that's going to be scandalous. most people will support the president doing this. but it obviously ca

as sequestration take effect at the beginning of march.thepentagonhasto reduce spending by $46 billion in the remaining seven months of fiscal year 2013. >> if these cuts happen there will be a serious disruption in defense programs and a sharp decline in our military readiness. >> reporter: this army document says three-fourths of its combat brigades will have to delay their training for several months resulting in a failure to meet demands of the national military strategy by the end of this year. afraid it will have to take $18 billion out of its own budget the army has already stopped maintenance of 1,300 vehicles and 17,000 weapons. according to this document the air force would cut its overhauls of aircraft by one-third, with the result that some planes would have to be grounded. flying hours for air force pilots would be cut by 18%. >> it puts at risk our fundamental mission of protecting the american people. >> reporter: combat operations in afghanistan would not be affected by the cuts but the pull-out of $20 billion worth of equipment could be delaye

thepentagoncuts.he's on the defensive. they are saying we are not going to lift a finger until you offer us alternate cuts in the same amount. >> meaningful spending cuts to dallot the budget. >> otherwise they will go for the automatic cuts. >> that is march 1st. >> it's the only twhar going to get any cuts out of obama. it's now automatic. all you have to do is stand back and do nothing. >> it is march 1st the deadline? >> march 1st. >> monday marks the 4th consecutive year the president did not pass a budget. >>> before you leave the house this morning you need to get the first degree weather update with maria molina. >> we are hearing about this another ea nor' easter that could be heading to the northeast. >> we are talking about an area of low pressure that is expect to do develop as we head into the next couple days and later friday afternoon into early saturday morning we could be looking at significant no fall accumulations into places like new englandment computer models disagreeing to exactly how strong the storm will be and the exact track it will take. that will be critical as

hagel will show up for his first day of work inthepentagon. hewas confirmed last night by a 58-41 vote. and the president's choice for treasury secretary could be confirmed today, jack lew. he sailed through the senate finance committee yesterday. >>> stunning decision from natureo. a really bad clerical error. a 7% decline in violence in afghanistan last year, turns out was inaccurate. taliban attacks held steady. and militants killed 17 people overnight, including ten afghan police officers while they slept this in the gazni province in afghanistan. >>> dennis rodman is in north korea, of all places. with three members of the famed harlem globetrotters to put on a show for fans while she film a tv documentary. rodman, known as the worm, tweeting from inside north korea and saying maybe i'll run into the gangnam style dude while i'm here. psy, he is south korean, not north korean. >> a little bit of a problem. >> a big difference. >> i haven't heard the nickname the worm since about 1999. >> rodman, bad as i want to be. >> yet there he is tweeting from north korea. >>> still a

atthepentagoninalexandria, virginia. hagel expected to make remarks later this hour. >>> police released photos wanted for questioning, they say 22-year-old tanesha howard was inside a black suv when shots were fired. her mother says the suspected shooter is the young woman's boyfriend. >>> the star of an iconic anti-smoking ad has died. >> they say nicotine isn't addictive. how can they say that? >> debi austin became famous to are this commercial warning others about the dangers of cigarette smoking. she died friday after a long bat well cancer. >>> the college admissions test known as the s.a.t. is getting a makeover. the college board says the new test will focus more on knowledge and skills high schoolers need to succeed in college. no word on when students will begin taking the new test. >>> talk back today, is it right for dennis rodman to be in north korea? facebook.com/carolcnn or tweet me @carolcnn. i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get informat

thepentagon, hisanswer was simple. no. but i kept asking. i am persistent. that's how michelle married me. i just kept at it, and it is a testament to leon's patriotism, to his sense of duty that he agreed to serve on this one last tour. and perhaps it was the memory during world war ii of his parents opening up their homes to gis headed for the pacific. perhaps it was because leon served himself as a young lieutenant in the army. perhaps it was the experience of watching his youngest son deploy to afghanistan. what we do know is this, as our nation's 23rd secretary of defense, every action leon panetta has taken, every decision that he has made, has been with one goal in mind -- taking care of our sons and our daughters in uniform and keeping america safe. and just think of the progress under his watch. because we ended the war in iraq and are winding down the war in afghanistan, our troops are coming home, and next year our war in afghanistan will come to an end. we've put the core of al qaeda on the path to defeat, and we've been relentless against its affiliates. because we have a sacred

this morning," david martin,thepentagon. >>>new information this morning highlights the link between senator robert menendez and one of his top campaign donors. we showed you last week how the new jersey democrat recently paid more than $50,000 for trips he took on a private jet owned by dr. solomon mel get. "the washington post" is now reporting that menendez asked federal officials twice, raising concerns about a medicare audit of dr. melgin. he's reordering him to pay over $9 million in medicare. >>> breaking news this morning. three southern california officers have been shot. police in riverside, california, has just confirmed one of the suspects is dead. the suspect used to be one of their own. he's already linked to a double murder. security has been beefed up for high-ranking officials at lapd. bill witd ter shows us why the suspect may have given clues he was about to commit a killing spree. >> his current whereabouts are unknown as we're asking for the public's health. >> reporter: christopher lawrence the corner. he's still on the loose and they're searching for his blue nissan pi

.thepentagonnowcutting the amount of persian gulf aircraft carriers from two to one and delaying the fueling to save money. >> and others are ramping up spending and senior fellow at the advanced studies, lt. colonel tony schaeffer joins us now. >> how are you. >> alisyn: doing well. three weeks from now, march 1st, if congress doesn't get its act together there are sweeping military cuts set to go in place and this, at the same time that we know that china and russia, in the face of two decades will outpace us with their military spending. what do you make of that? >> well, firstoff, we spend 40% of the world's budget on defense right now and i think what we have to do is fix our strategy first. one of the problems is, ali, we have had the same basic frame work since 1947 and 1947 with some adjustments in the 80's, we figure out the real threats. i always talk about the beginning with the end in mind and this is where we have an opportunity here, since we won the cold war, we're ending the wars in afghanistan and iraq, time to rethink how we focus what we do. we've noticed spending money on

the sequester in a hurry, then yes, it's a real problem because it doesn't letthepentagonbeginto plan and distribute, if you will, the cuts. but at the end of the day, whether it's defense spending, education spending, health spending, what always matters more than how much you spend is how you spend it. and so i'm not, at the end of the day, all that worried about how much we spend, whether it's on defense or anything else. you just want to have the time to make some intelligent cuts rather than have to make them literally in a matter of days which would probably mean that readiness more than anything else would be cut out of the defense department account. and that's probably the one thing you don't want cut out of it. >> sam stein, you're close and yet so far away over there at the jump seat. what are the odds that the sequester actually takes place? we know the president's proposed something to push them back a while. are we going to see these kind of cuts, the ones that were outlined in the sequester proposal? >> i think the odds are pretty high, to be honest. i don't think there

to oppose his nominees for top cabinet slots atthepentagonandcia. republican senator lindsey graham threatened to hold up those picks until the white house delivers more information about the attacks in benghazi. >> i don't think we should allow brennan to go forward for the cia directorship, hagel to be confirmed as secretary of defense until the white house gives us an accounting, did the president ever pick up the phone and call anyone in the libyan government to help these folks? what did the president do? yes, i'm going to ask my colleagues just like they did with john bolton, joe biden said, no confirmation without information. no confirmation without information. >> you are saying that you are going to block the nominations -- you're going to block them from coming to a vote until you get an answer? >> yes. >> now, john mccain has already think that he doesn't think republicans ought to filibuster this. what will you do? you're just going to put a hold on it? >> yeah, i'm not filibustering. this is a national security failure of monumental proportions, and i'm not going to st

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